Preventing Global Warming

Global Warming Prevention Policy and Framework

We set ourselves clear targets in each sector and are constantly working to reduce CO2 emissions, with the aim of minimizing levels of greenhouse gases emitted as a result of our business activities. We also consider it our duty to develop and supply products and services that will contribute to the creation of a low-carbon society.
As well as CO2 from energy sources, our cement operations also produce CO2 emissions as a result of the thermal decomposition of limestone, the main raw materials in cement production. Any tightening of regulations on greenhouse gas emissions in the future (including emissions trading schemes) could therefore pose a considerable financial risk. At the same time however, demand for technologies and products that will help to save energy and reduce CO2 emissions is expected to increase, which could create more business opportunities for Mitsubishi Materials Group in the future.
The Global Environment and Energy Committee (chaired by the President and consisting of members of the Corporate Strategy Committee) plays leading role with regard to strategic initiatives in response to global warming-related risks and opportunities such as these from a comprehensive, medium- to long-term perspective.

Comprehensive Initiatives Aimed at Preventing Global Warming and Creating a Sustainable World

We set out a vision aimed at becoming the leading business group committed to creating a sustainable world. With this vision in mind, and taking into account our broader goal of creating a sustainable world, we have set ourselves targets for the prevention of global warming, and are working on a comprehensive range of initiatives to achieve those targets, alongside targets aimed at helping to create a sustainable world.

Targets for 2020 and Results/Progress in FY2016

:100% or higher achievement of milestones at the end of fiscal 2016 for achieving the 2020 targets, ：Between 80% and 100% achievement, ：Between 50% and 80% achievement,：Less than 50% achievement

[Cement] All facilities (Aomori, Iwate, Yokoze, Kyushu, Higashitani)

Improve energy efﬁciency through the ongoing installation of energy saving equipment. Promote the use of waste and byproducts from other industries as alternative materials for cement

Percentage of alternative thermal energyIncrease of 2% (compared to FY2011)

Reduction of 1.9%

[Metals] Naoshima Smelter & Refinery

Install high-efﬁciency equipment, and upgrade or install heat recovery and other such equipment at copper smelting facilities, in order to improve energy efﬁciency. Cater to growing volumes of E-scrap overseas, reinforce pre-treatment facilities, and step up recycling operations.

Preventing global warming

Targets

Progress

Energy consumption per unitReduction of 1% per year (14% overall reduction compared to FY2006)

Reduction of 12.1%

Creating a sustainable world / contributing to the environment

Targets

Progress

Volume of E-scrap processed over 100,000 tons per year

82,300 tons/year

[Metals] Sakai Plant

Upgrade equipment to energy saving models as part of manufacturing processes for copper and brass materials, copper alloys and processed copper products.

Preventing global warming

Targets

Progress

Energy consumption per unitReduction of 1% per year (14% overall reduction compared to FY2006)

Reduction of 3.5%

Creating a sustainable world / contributing to the environment

Targets

Progress

Waste oil/acidReduction of 40% (compared to FY2006)

Up 124%

[Advanced Materials & Tools] Tsukuba Plant

Upgrade water chillers and heaters as part of air conditioning systems, and other equipment, to energy saving models as part of the manufacturing process for cemented carbide tools, and improve the overall efﬁciency of production equipment.

Preventing global warming

Targets

Progress

Energy consumption per unitReduction of 20% (compared to FY2006)

Up 17.2%

Creating a sustainable world / contributing to the environment

Targets

Progress

Scrap generated Reduction of 40% (compared to FY2010)

Reduction of 18.2%

[Advanced Materials & Tools] Gifu Plant

Upgrade compressed air systems as part of the manufacturing process for cemented carbide tools, reduce liquid waste through measures to prevent leeks, and focus on
development of environmentally friendly products.

Preventing global warming

Targets

Progress

Energy consumption per unitReduction of 15% (compared to FY2006)

Reduction of 32.4%

Creating a sustainable world / contributing to the environment

Targets

Progress

Incorporate industrial waste indicators (volume of industrial waste produced per production value) into all medium-term plans, and continue to achieve 100%.

Reduction of 34.3%

Continue to achieve targets for the number of certified environmentally friendly products set out in medium-term plans.

[Electronic Materials & Components] Sanda Plant

Upgrade coolant water systems and other equipment to energy saving models as part of the manufacturing process for functional materials. Continue to develop next generation components for high efﬁciency inverters.

Preventing global warming

Targets

Progress

Energy consumption per unitReduction of 1% per year (15% overall reduction compared to FY2006)*Specific to this plant

Reduction of 20.3%

Creating a sustainable world / contributing to the environment

Targets

Progress

Develop next generation components for high-efficiency inverters(Reduction in CO2 emissions when using products: at least 3x higher compared to FY2009)

Reduction Initiatives During Fiscal 2016

Progress towards targets as of the end of fiscal 2016

Out of nine areas covered under our target of "preventing global warming", we were at 100% or higher compared to our milestones at the end of fiscal 2016 in five areas, but had achieved less than 50% in four areas. Out of eleven areas covered under our target of "creating a recycling-oriented society/contributing to the environment", we had achieved 80% or higher in seven areas, but less than 50% in three areas.
The most common reason for achieving less than 50% was that operating conditions have changed considerably from expectations at the time when targets were set. We are currently looking into ways of achieving targets at facilities with lower levels of achievement.

Major Initiatives in Each Sector

We regard it as a top priority to save energy wherever possible at our manufacturing facilities and plants. That is why we are so committed to energy saving activities.
Specific activities include switching fuels, making effective use of untapped energy, upgrading processes and equipment, installing high-efficiency equipment, optimizing device specifications, and reviewing equipment controls and operating practices. We are constantly working to save energy at smaller facilities too, including Head Office, branches, sales offices and research facilities, through measures such as installing LED lighting.

Cement

We are working to reduce power consumption through measures such as optimizing mill operating controls, reviewing maintenance of exhaust heat power generation systems, using higher efficiency controls for large fans, and improving conveyor efficiency, and to improve energy efficiency through initiatives such as increasing the amount of alternative thermal energy sources that we use.

Metals

We are working to improve energy efficiency through initiatives aimed at reducing power consumption, including switching to LED lighting and using higher efficiency transformers.

Advanced Materials & Tools, Electronic Materials & Components

We are working to improve energy efficiency through initiatives aimed at reducing power consumption, including using higher efficiency water pump controls, air conditioning systems, refrigeration equipment, and compressors, switching to LED lighting, optimizing refrigeration and utility equipment, and improving wastewater treatment processes.

CO2 Derived from Energy Sources (nonconsolidated)*

* CO2 derived from non-energy sources comes mainly from limestone, which is used as a raw material. As it is difficult to substitute or reduce volumes of limestone, however, our emissions target covers CO2 emissions derived from energy sources, which can be reduced by energy saving initiatives.

* The above figures have been calculated in accordance with Version 4.1 of the Manual for Calculating and Reporting Greenhouse Gas Emissions issued by the Ministry of the Environment and Ministry of Economy, Trade and Industry.IEA country-specific power emission coefficients used to calculate overseas CO2 emissions from fiscal 2015 onwards.

Logistic Initiatives

Mitsubishi Materials' CO2 emissions from shipping in fiscal 2016 totaled 42,373 tons, up 670 tons from the previous year. Energy consumption per unit meanwhile remained at roughly the same level as the previous year, at 15.9 kiloliters per million ton-kilometers*1. On a consolidated basis*2, CO2 emissions totaled 76,060 tons (down 1,637 tons on the previous year), with energy consumption per unit coming in at 20.08 kiloliters per million ton-kilometers (an improvement of 1% from the previous year).
We also launched a logistic data system in 2015, with the aim of "visualizing" shipping data. We intend to use this to identify issues relating to logistics, formulate and implement improvements, and increase logistic efficiency even further.

*2 Consolidated figures refer to six companies classed as “specified shippers,” accounting for over 90% of emissions from domestic group companies.

CO2 emissions according to mode of transport[t-CO2]

FY2015

Mitsubishi Materials

6 group companies

Total

41,703

35,994

Road

7,842

28,147

Rail

0

26

Sea

33,815

7,821

Air

46

0

FY2015

Mitsubishi Materials

6 group companies

Total

42,373

33,687

Road

7,959

26,400

Rail

0

24

Sea

34,359

7,263

Air

55

0

Sixth Eco Contest

We have been running our Eco Contest since fiscal 2011, as an award scheme to promote activities at facilities throughout the Mitsubishi Materials Group, aimed at preventing global warming, preserving resources and protecting the environment. The results of our fiscal 2016 contest are outlined on the below. (No Grand Prize (Activity))

Grand Prize (Facility): Gifu Plant

The Gifu Plant has achieved a whole host of results, including saving energy by installing waste heat recovery compressors and recycling raw materials, as well as developing longer lasting general-purpose drills, reducing alkaline waste and upgrading to high efficiency equipment. It has also developed drills that have been registered as environmentally friendly products, and reduced specific CO2 emissions and industrial waste.

Outstanding Achievement (Activity): Sanda Plant

The Sanda Plant has established its own certification scheme called "Eco Meister Sanda (EMS)", with the aim of training professionals in eco activities.

Outstanding Achievement (Activity): Yokoze Plant

The Yokoze Plant has increased its processing capacity for waste plastic, as an alternative source of thermal energy, which has helped to cut costs, reduce CO2 emissions from energy sources, and extend the life span of landfill sites.

Capture and Underground Storage of CO2

Outline of CCS (courtesy of Japan CCS Co., Ltd.)

Having been keeping a close eye on new carbon dioxide capture and storage (CCS) technology, capable of isolating and recovering CO2 from production activities and storing it underground rather than releasing it into the air, in May 2008 we invested in Japan CCS Co., Ltd. and began to get involved in its activities. Japan CCS was established with the aim of developing and conducting feasibility studies into the relevant technology. Through Japan CCS, we intend to harness outstanding technologies and human resources that Mitsubishi Materials and other group companies have built up over many years, in areas such as geological assessment, in order to contribute to large-scale CCS demonstration testing in Tomakomai and studies into suitable locations for CO2 storage. Having signed up to an environmentally friendly CCS testing project headed by the Ministry of the Environment in fiscal 2017, we will also be contributing to assessment studies for CO2 storage under the seabed.